U.S. Attorney's Office, New Mexico, "New Mexican Business Owner Settles Allegations of COVID-19 Relief Fund Misuse with U.S. Attorney's Office" (Jan. 14, 2025)
Summary
A press release from the U.S. Attorney's Office, New Mexico, dated Jan. 14, 2025, announcing a False Claims Act settlement with Leonard Vandenberg, who owns and operates several restaurants in New Mexico and Texas. The United States contends that he received three EIDL loans totaling $2,795,700.00 and moved the majority of the money into his personal investment accounts. Under the settlement he will pay $3,281,825.62, of which $2,731,750.26 is restitution, applied to the balances of the EIDL loans and associated advances. He also agreed not to seek assistance from or participate in any Small Business Administration program for five years. The release states that the claims are allegations only and that there has been no determination of liability.
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Cite this document
“U.S. Attorney's Office, New Mexico, ‘New Mexican Business Owner Settles Allegations of COVID-19 Relief Fund Misuse with U.S. Attorney's Office’ (Jan. 14, 2025).”
Original at www.justice.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/u-s-attorney-s-office-new-mexico-new-mexican-business-owner-settles-al-d0e6ee5250/
, SHA-256 511ec86f9dc360e910a573728b4bdc5b4ed8dce00aaad15abb9714deda3daffc.Full text
ALBUQUERQUE – A New Mexico business owner has agreed to pay $3.2 million to resolve allegations that he violated the False Claims Act by misusing funds received through the Small Business Administration's Economic Injury Disaster Loan (EIDL) program, which was expanded under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The United States contends that Leonard Vandenberg , who owns and operates several restaurants in New Mexico and Texas, applied for and received three EIDL loans totaling $2,795,700.00 for his businesses. These loans were intended to be used for working capital and expenditures necessary to alleviate economic injury resulting from the COVID-19 pandemic. However, after receiving the funds, Vandenberg allegedly moved the majority of the money into his personal investment accounts. As part of the settlement, Vandenberg will pay $3,281,825.62, of which $2,731,750.26 is restitution. This amount will be applied to the balances of the EIDL loans and associated advances. Additionally, Vandenberg has agreed not to seek any assistance or support from or participate in any Small Business Administration program for a period of five years. The government’s investigation was led by Assistant United States Attorney Cassandra C. Currie and Auditor Phillip Stella. The claims resolved by the settlements are allegations only, and there has been no determination of liability. # # #
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- 511ec86f9dc360e910a573728b4bdc5b4ed8dce00aaad15abb9714deda3daffc
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- www.justice.gov